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Private money-lending business banned in Jharkhand

Press Trust of India  |  Ranchi 

The private money-lending business has been banned in with the recent enactment of a law, an official release said today.

The 'nizi sahukar (nishedh) vidheyak 2016' (private money-lending (ban) bill, 2016) was passed by the Assembly recently and the act would bar 'shaukari', 'mahajani', and 'sudhkhori' (private money-lending/usury), the release said here.

The act also slaps a fine of Rs 5,000 on the first offence and Rs 10,000 if the offender committed it for the second time, besides the respective jail terms, it said.

The release quoted Development Commissioner Amit Khare as saying that the menace had affected innocent villagers, particularly the tribals.

He, however, explained that there was no bar in giving interest-free loans. The act only bars private loans on interest or keeping something as mortgage.

Earlier, had adopted the 'sahukar adhiniyam 1974,' but it only dealt with controlling money- lenders, the release said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 25 2016. 20:22 IST